Just need an idea
April 11, 2008 10:23 AM Subscribe
What kind of business should I start?
I am a 24y/o male who lives in the suburbs of Toronto.
I manage a car rental branch, and have been in lower management for 3 years at the company.
I get a company car and make a decent amount of money for someone my age, especially with no college/university diploma.
I don't want to quit my job yet, but I'd love to start something for myself, that would hopefully one day allow me to be completely self-employed.
I have about $25,000 of savings to put into a venture. And have a large social circle (many ages and skill sets) that would love to work for me.
I'm not a great salesman, but have good social skills, and can manage tasks and people very well.
I don't have a passion, so let's not go down that road of doing something "I love". I can learn quickly and am willing to try something totally new to me.
I am a 24y/o male who lives in the suburbs of Toronto.
I manage a car rental branch, and have been in lower management for 3 years at the company.
I get a company car and make a decent amount of money for someone my age, especially with no college/university diploma.
I don't want to quit my job yet, but I'd love to start something for myself, that would hopefully one day allow me to be completely self-employed.
I have about $25,000 of savings to put into a venture. And have a large social circle (many ages and skill sets) that would love to work for me.
I'm not a great salesman, but have good social skills, and can manage tasks and people very well.
I don't have a passion, so let's not go down that road of doing something "I love". I can learn quickly and am willing to try something totally new to me.
What are your goals aside from making money? What do you care about?
If you can't think of anything, then maybe you could hold on to the money you have saved and spend your extra time exploring a bit, meeting people (which will only stand you in good stead when you are ready to start a business), and learning a little more about the world. Eventually, something will probably turn up that you *will* care about, and you may also have people already around that interest who you can turn to for help.
In the meantime, as you're exploring, you can learn a little about business - maybe take a course or two.
posted by amtho at 10:54 AM on April 11, 2008
If you can't think of anything, then maybe you could hold on to the money you have saved and spend your extra time exploring a bit, meeting people (which will only stand you in good stead when you are ready to start a business), and learning a little more about the world. Eventually, something will probably turn up that you *will* care about, and you may also have people already around that interest who you can turn to for help.
In the meantime, as you're exploring, you can learn a little about business - maybe take a course or two.
posted by amtho at 10:54 AM on April 11, 2008
horse wrangler?
dog walker?
teabag dunker?
apple corer?
calendar page turner?
dog poop picker upper?
shoe lace tier?
old-lady-street crosser?
board-game designer?
stop sign cleaner?
landscaper?
lawn-mower?
bike courier?
financial planner?
slot machine handle puller?
girl guide/girl scout cookie taster?
soda pop can collector?
bunny photographer?
OK as you can see, there are lots of ideas floating around. You need more than just an idea. You need to identify a need. You need to find a solution to that need. It can be an existing solution that you will do better (i.e. build a better mousetrap) or a completely new solution. That being said, stick to something you know. You worked in the car rental business for 3 years. That is a lot of time to understand the industry. Understand the needs of clients. Understand their frustrations. Understand what you would do differently. What you would do better. 3 years of experience might be better than any of the ideas that I have to offer.
Speaking of which:
guck that collects under my computer mouse cleaner
hot dog vendor
lemonade stand tycoon
human windshield wiper
thumb tack sharpness tester
open fly inspector
picture frame straightener
human scarecrow
cemetery tour guide...
posted by bitteroldman at 10:54 AM on April 11, 2008 [1 favorite]
dog walker?
teabag dunker?
apple corer?
calendar page turner?
dog poop picker upper?
shoe lace tier?
old-lady-street crosser?
board-game designer?
stop sign cleaner?
landscaper?
lawn-mower?
bike courier?
financial planner?
slot machine handle puller?
girl guide/girl scout cookie taster?
soda pop can collector?
bunny photographer?
OK as you can see, there are lots of ideas floating around. You need more than just an idea. You need to identify a need. You need to find a solution to that need. It can be an existing solution that you will do better (i.e. build a better mousetrap) or a completely new solution. That being said, stick to something you know. You worked in the car rental business for 3 years. That is a lot of time to understand the industry. Understand the needs of clients. Understand their frustrations. Understand what you would do differently. What you would do better. 3 years of experience might be better than any of the ideas that I have to offer.
Speaking of which:
guck that collects under my computer mouse cleaner
hot dog vendor
lemonade stand tycoon
human windshield wiper
thumb tack sharpness tester
open fly inspector
picture frame straightener
human scarecrow
cemetery tour guide...
posted by bitteroldman at 10:54 AM on April 11, 2008 [1 favorite]
A good way to lose a friend is to employ them. There are exceptions of course, but I'm just sayin'.
posted by Atom12 at 10:57 AM on April 11, 2008
posted by Atom12 at 10:57 AM on April 11, 2008
$25k isn't a lot of money to start a business that isn't either online or you making something and selling it; from your post, I gather neither of these routes are appealing to you.
Take that money and put it into your education with a focus on business (accounting/econ/whatnot). You'll get the knowledge, education, and contacts you need to create a business plan and get a loan from a bank to execute on it.
And have a large social circle (many ages and skill sets) that would love to work for me.
Everyone has a large social circle who says these things until you actually call on them to do it.
posted by mkultra at 11:00 AM on April 11, 2008
Take that money and put it into your education with a focus on business (accounting/econ/whatnot). You'll get the knowledge, education, and contacts you need to create a business plan and get a loan from a bank to execute on it.
And have a large social circle (many ages and skill sets) that would love to work for me.
Everyone has a large social circle who says these things until you actually call on them to do it.
posted by mkultra at 11:00 AM on April 11, 2008
Lil' Orbits.
Battery Reconditioning.
Promotional Products Manufacturing.
posted by Floydd at 11:14 AM on April 11, 2008
Battery Reconditioning.
Promotional Products Manufacturing.
posted by Floydd at 11:14 AM on April 11, 2008
Response by poster: Ya, I guess my question is a bit broad/border-line silly to post here.
I guess I've just always wanted to operate my own business and just want someone to tell me what the heck to do already.
I guess my real question is: What business would you start with $25,000 in 2008, and why?
posted by kevin_2864212 at 11:21 AM on April 11, 2008
I guess I've just always wanted to operate my own business and just want someone to tell me what the heck to do already.
I guess my real question is: What business would you start with $25,000 in 2008, and why?
posted by kevin_2864212 at 11:21 AM on April 11, 2008
I guess my real question is: What business would you start with $25,000 in 2008, and why?
Profitable is the answer to both queries.
posted by Mblue at 11:42 AM on April 11, 2008
Profitable is the answer to both queries.
posted by Mblue at 11:42 AM on April 11, 2008
My advice would be stick with what you know. With only $25k, you can't afford much of a learning curve, nor very many unprofitable months.
So that said, what I would do were I you is start a specialty car-rental joint. You're never going to compete with Hertz and Avis, but then they are forced to rent crappy cars. What if your rental shop had a bunch of old convertibles and Vespa scooters and dune buggies or whatever? Some dude wants to impress his date with by picking her up in a flashy ride, or an out-of-town business man is going to shoot himself if he has to get behind the wheel of one more rented Impala, or a couple want a special car to drive off from their wedding in. They come to you.
With $25k Canadian, a weak-ass U.S. Dollar, and with this sub-prime mess all sorts of Americans defaulting on all sorts of loans - like car leases - I bet your $25k Canadian could get you a couple - hell, maybe 5 or 6 - pretty decent classic cars from upstate New York. Even if they're not in great shape, you have one of your mechanic friends fix them up for you in return for a share of the business. Now you have a managing partner to run the garage for you and handle repairs, and he's guaranteed to do a good job because he has an ownership stake in those cars.
The big problem is obviously going to be cash flow. You're going to need it constantly to cover insurance, repairs, your brick-and-mortar, and (eventually) salaries. So I'd see this as something of a long-term project, spend this summer tracking down some cars, spend all winter fixing them up, and then next spring open for business. I have a feeling that opening any kind of business other than a plowing service in Toronto at any other time of year is probably suicide.
posted by ChasFile at 12:01 PM on April 11, 2008
So that said, what I would do were I you is start a specialty car-rental joint. You're never going to compete with Hertz and Avis, but then they are forced to rent crappy cars. What if your rental shop had a bunch of old convertibles and Vespa scooters and dune buggies or whatever? Some dude wants to impress his date with by picking her up in a flashy ride, or an out-of-town business man is going to shoot himself if he has to get behind the wheel of one more rented Impala, or a couple want a special car to drive off from their wedding in. They come to you.
With $25k Canadian, a weak-ass U.S. Dollar, and with this sub-prime mess all sorts of Americans defaulting on all sorts of loans - like car leases - I bet your $25k Canadian could get you a couple - hell, maybe 5 or 6 - pretty decent classic cars from upstate New York. Even if they're not in great shape, you have one of your mechanic friends fix them up for you in return for a share of the business. Now you have a managing partner to run the garage for you and handle repairs, and he's guaranteed to do a good job because he has an ownership stake in those cars.
The big problem is obviously going to be cash flow. You're going to need it constantly to cover insurance, repairs, your brick-and-mortar, and (eventually) salaries. So I'd see this as something of a long-term project, spend this summer tracking down some cars, spend all winter fixing them up, and then next spring open for business. I have a feeling that opening any kind of business other than a plowing service in Toronto at any other time of year is probably suicide.
posted by ChasFile at 12:01 PM on April 11, 2008
At least in Ontario, there are various programs setup to help people start small businesses. With a decent business plan, you might be eligible for a number of loans and small grants. With being able to put in 25K of your own money, banks will be more likely to consider you serious; so suddenly one has the potential of 100-200k .
But you still need an idea, and a business plan. If you're going to have employees, they're costly. If you have a brick and morter location, that's costly.
If you don't have a great idea/inspiration, *and* you want someone to tell you what to do, look at starting a franchise. I seem to recall that you can actually start an M&M meat shop for around $50k, and they'll hook you up with suggested locations and installed freezers/inventory ... Some franchises (cough: Tim Hortons) are quite expensive, but there are others that are closer to your ballpark. Try shopping around.
posted by nobeagle at 12:10 PM on April 11, 2008
But you still need an idea, and a business plan. If you're going to have employees, they're costly. If you have a brick and morter location, that's costly.
If you don't have a great idea/inspiration, *and* you want someone to tell you what to do, look at starting a franchise. I seem to recall that you can actually start an M&M meat shop for around $50k, and they'll hook you up with suggested locations and installed freezers/inventory ... Some franchises (cough: Tim Hortons) are quite expensive, but there are others that are closer to your ballpark. Try shopping around.
posted by nobeagle at 12:10 PM on April 11, 2008
What do you have or know or do that few other people have/know/do? That's what people will want to pay you for.
posted by winston at 12:17 PM on April 11, 2008
posted by winston at 12:17 PM on April 11, 2008
How about looking at this quiz? There are also lots of tidbits in the sidebar.
I'd think something service-oriented, because $25,000 isn't a lot if you think about overhead and inventory, and possibly insurance. Ebay expert? You can start that in your off hours.
Other services where you might bring your friends along would be: local messenger service (think travel agencies, they need delivery, as well as businesses), small-item packer for homes and business moving, car detailing, home stager for making a home more appealing to buyers, and dog poop removal from people's yards, if you're not too squeamish.
I'd definitely start subscribing to an entrepreneur magazine or website for ideas, as well as looking into courses at your local schools. Make your first order of business deciding what business to go into. You have to be able to make decisions to run a business!
posted by Marie Mon Dieu at 12:19 PM on April 11, 2008
I'd think something service-oriented, because $25,000 isn't a lot if you think about overhead and inventory, and possibly insurance. Ebay expert? You can start that in your off hours.
Other services where you might bring your friends along would be: local messenger service (think travel agencies, they need delivery, as well as businesses), small-item packer for homes and business moving, car detailing, home stager for making a home more appealing to buyers, and dog poop removal from people's yards, if you're not too squeamish.
I'd definitely start subscribing to an entrepreneur magazine or website for ideas, as well as looking into courses at your local schools. Make your first order of business deciding what business to go into. You have to be able to make decisions to run a business!
posted by Marie Mon Dieu at 12:19 PM on April 11, 2008
i'm a serial entrepreneur and have been for the last 15 years or so. a couple words of advice:
1 - you may not have a great passion now, but whatever business you decide to start will become your life for the foreseeable future. As such, before you decide to dive in head first go work for a company that does something similar. you may be surprised that you find it isn't quite as enjoyable or as good of a fit as you might expect.
2 - sit down and write out a list of why you want to start your own business. put a lot of thought into this. if your predominant reasoning is to make a lot of money, research out high growth business sectors that are within your risk comfort zone. if your main reason is to make a difference to a certain segment of the population (and make money along the way, let's not kid ourselves) then really seep yourself in how that population is being undeserved. do tons of research and don't rush into anything because you're overly excited about it.
3. before you quit your day job write a business plan. not only will this be helpful if you need to get a loan or look for investment, but more than anything else it will force you to think through some things that you haven't yet thought of.
4. i agree with other commenters that $25,000 isn't a lot of money to start with. as such, you'll likely either need to develop your business around your existing skill set (e.g. a service business) or around some low cost wholesale/retail item. Alternatively, you can write up a killer business plan and go get a loan/investment.
5. you say you already have a good social network - keep building that and talk to everyone you can trust about business ideas. you'd be surprised how many non-business people out there have great ideas but don't know how to bring them to market.
hope this helps. good look!
posted by tundro at 12:31 PM on April 11, 2008 [3 favorites]
1 - you may not have a great passion now, but whatever business you decide to start will become your life for the foreseeable future. As such, before you decide to dive in head first go work for a company that does something similar. you may be surprised that you find it isn't quite as enjoyable or as good of a fit as you might expect.
2 - sit down and write out a list of why you want to start your own business. put a lot of thought into this. if your predominant reasoning is to make a lot of money, research out high growth business sectors that are within your risk comfort zone. if your main reason is to make a difference to a certain segment of the population (and make money along the way, let's not kid ourselves) then really seep yourself in how that population is being undeserved. do tons of research and don't rush into anything because you're overly excited about it.
3. before you quit your day job write a business plan. not only will this be helpful if you need to get a loan or look for investment, but more than anything else it will force you to think through some things that you haven't yet thought of.
4. i agree with other commenters that $25,000 isn't a lot of money to start with. as such, you'll likely either need to develop your business around your existing skill set (e.g. a service business) or around some low cost wholesale/retail item. Alternatively, you can write up a killer business plan and go get a loan/investment.
5. you say you already have a good social network - keep building that and talk to everyone you can trust about business ideas. you'd be surprised how many non-business people out there have great ideas but don't know how to bring them to market.
hope this helps. good look!
posted by tundro at 12:31 PM on April 11, 2008 [3 favorites]
I agree that if you don't have strong interests of your own, you might like a franchise. Maybe Zipcar, if they're active in Toronto?
posted by PatoPata at 12:34 PM on April 11, 2008
posted by PatoPata at 12:34 PM on April 11, 2008
Re: franchises. Be careful- it's appealing to get, essentially, a "business in a box", but the success of franchises often depends on things outside the plan-on-paper: location, seasonal buying patterns, etc. Unless I had real experience working in one of their stores already, or at the very least had good industry experience, there's no way I'd take on a franchise without a good cash buffer to weather me through all of the first-year mistakes I'd be bound to make.
posted by mkultra at 1:00 PM on April 11, 2008
posted by mkultra at 1:00 PM on April 11, 2008
This website on "Idea Assessment and Business Development" might help you start figuring out what ideas are feasible for you after you brainstorm a few that might work. Resources on pre-feasibility studies and feasibility studies will probably also be helpful. The Small Business Association (in the U.S.) has some resources for that.
Also worth checking out is your local state and city agencies. Usually there are at least some free (or cheap) technical support for small business start-ups.
Good luck!
posted by lunit at 1:17 PM on April 11, 2008
Also worth checking out is your local state and city agencies. Usually there are at least some free (or cheap) technical support for small business start-ups.
Good luck!
posted by lunit at 1:17 PM on April 11, 2008
If I was going to start a business in 2008 it would be a video editing company. Think of how many people post crappy videos on youtube. They might be willing to be $20 to have someone edit it and make it all nice and shiny. They would just send you their raw footage, and you'd fix it up. Easy. Lucrative. Win.
posted by proj08 at 5:49 PM on April 11, 2008
posted by proj08 at 5:49 PM on April 11, 2008
On second thought, that's not exactly a brilliant idea. Sorry, nevermind.
posted by proj08 at 5:53 PM on April 11, 2008
posted by proj08 at 5:53 PM on April 11, 2008
Try a service business
If you live in an area with a large enough population, the demand for services is almost infinite. The challenge is in trying to find services that people want and that are profitable enough to consume your time. Service businesses are great because they're often inexpensive to start, because you'll mainly rely on human skill. Finding the right skill can be a challenge.
Try this: Analyze your area to determine services that are already popular (spas, salons, grocery delivery, paperwork, messaging, delivery, etc). A service is anything that people or businesses do that may be outsourced more effectively to someone else. Jot down about 10 or so that seem potentially interesting. Then, go read this book: Blue Ocean Strategy.
Come up with "Blue Oceans" (differentiators) for each of the 10 services that you've chosen. Rank them by potential profitability.
posted by brandnew at 6:07 AM on April 12, 2008
If you live in an area with a large enough population, the demand for services is almost infinite. The challenge is in trying to find services that people want and that are profitable enough to consume your time. Service businesses are great because they're often inexpensive to start, because you'll mainly rely on human skill. Finding the right skill can be a challenge.
Try this: Analyze your area to determine services that are already popular (spas, salons, grocery delivery, paperwork, messaging, delivery, etc). A service is anything that people or businesses do that may be outsourced more effectively to someone else. Jot down about 10 or so that seem potentially interesting. Then, go read this book: Blue Ocean Strategy.
Come up with "Blue Oceans" (differentiators) for each of the 10 services that you've chosen. Rank them by potential profitability.
posted by brandnew at 6:07 AM on April 12, 2008
The franchise approach is way above your budget of 25k. (Many up-front franchise fees are more than this.) And there is no guarantee of success and plenty of horror stories.
A more cost-effective solution would be to travel. Trends hit Toronto about two years after other areas, so go to NYC, Paris, Berlin, etc. and simply idea shop. What's new? What's hot? What could be tweaked to work in Toronto?
You could also trend surf from your the comfort of your home. Springwise actually specializes in this. And start reading foreign newspapers and magazines.
Another approach is to think about who your customers are. Regular Joe Six-Pack? Aging Boomers? Lawyers? Car dealerships? Start with a group or industry that you think has money. Then learn all you can about the challenges they face. Maybe you can offer a solution to a problem?
posted by kamelhoecker at 3:28 PM on April 13, 2008
A more cost-effective solution would be to travel. Trends hit Toronto about two years after other areas, so go to NYC, Paris, Berlin, etc. and simply idea shop. What's new? What's hot? What could be tweaked to work in Toronto?
You could also trend surf from your the comfort of your home. Springwise actually specializes in this. And start reading foreign newspapers and magazines.
Another approach is to think about who your customers are. Regular Joe Six-Pack? Aging Boomers? Lawyers? Car dealerships? Start with a group or industry that you think has money. Then learn all you can about the challenges they face. Maybe you can offer a solution to a problem?
posted by kamelhoecker at 3:28 PM on April 13, 2008
This thread is closed to new comments.
Just because your social circle likes you (as they should), it doesn't follow that they want to work for you.
That aside, what are you good at, other than maybe running a business? What niche doesn't your community have? Do you want to have a brick-and-mortar business, or something that's online? We need some more specifics here, otherwise the question reads along the lines of "what color should I paint my house? I have no preferences."
posted by craven_morhead at 10:38 AM on April 11, 2008